Examples of Collar Amount in a sentence
Net Working Capital as of the Closing Date as set forth in the Final Adjustment Report shall be deemed to be the “Final Working Capital” (provided that if the absolute value of the difference between Final Working Capital and Estimated Working Capital is less than the Inside Collar Amount, then Final Working Capital shall be deemed equal to Estimated Working Capital).
Upon the final determination, pursuant to Section 1.3(b) above, of the Final Closing Statement, the Purchase Price shall be recalculated using the Closing Net Working Capital (giving effect to the Net Working Capital Collar Amount), the Closing Net Cash Amount, the Closing Indebtedness and the Transaction Expenses, each as set forth on the Final Closing Statement (the “Final Adjustment”).
If the Operating Working Capital as of the Closing Date (as determined in the final Closing Statement, as defined below) (the “Closing Operating Working Capital”) is greater than $3,616,000 (the “Upper Collar Amount”), the Purchase Price will be increased by an amount equal to (i) the amount of the Closing Operating Working Capital, less (ii) the Upper Collar Amount (the “Purchase Price Increase Amount”).
The “Final Cash Consideration” will be the Base Cash Consideration plus (1) the amount, if any, by which Final Net Working Capital exceeds the Upper Collar Amount, minus (2) the amount, if any, by which the Lower Collar Amount exceeds Final Net Working Capital, plus (3) Final Closing Cash, minus (4) Final Closing Indebtedness, minus (5) Final Seller Transaction Expenses, minus (6) Final Taxes Payable.
If the Adjustment Amount is a negative number with an absolute value equal to or less than the Collar Amount, then no payment shall be required under this Section 2.2.